Principles for the Reward Allocation - Essay Example

Work Answer There are three major principles for the reward allocation. Over the years on the basis of these three major principles rewards have been allocated to the employees. These three major principles are Equity, Need and Equality. Principle of need states rewards are allocated as per the individual needs. As far as the need principle is concerned rewards allocation can be adjusted and it is significantly flexible in nature. According to the principle of equity each individual’s contributions are measured. This principle is highly preferred by the individualistic cultures. The principle of equity is one of the most important criterions for reward allocation in individualistic culture. This principle gives significant importance towards individual performance and contribution. Here in this theory there is very low scope of free rider. Here employees get their rewards for their individual contributions towards attaining goal (Cullen & Parboteeah, 2014, pp. 34-41). To measure the individual performance, managers across the world use individual performance appraisals. On the other hand the principle of equality talks about equal shares to all individuals. This principle is significantly preferred by collectivist culture. This principle fits in the collectivists values quite nicely. In this principle there is enough scope of free rider. It is being noticed that Chinese managers believe in collectivists’ values and that is why they follow the principle of equality in their reward allocation. On the other hands American managers give more focus towards individual contributions that is why they follow equity principle for their reward allocation. Answer 2 Dirty tricks are cross cultural negotiation strategies generally used to pressurize opponents for accepting undesirable or unfair concessions or agreements. There are several dirty tricks. Deliberate deception is an example of dirty tricks. It is significantly inappropriate for the international negotiation. With the help of deliberate deception profitability can be earned for the short time. The deception cannot be fruitful for the long term business perspective. It can be exposed at any point of time (Moore & Woodrow, 2010, pp. 90-93). Negotiator should clearly point out all the details to avoid this dirty trick. Stalling is also an example of dirty tricks. This trick is not at all suitable for the cross cultural negotiation. It delays the whole negotiation process. Timeliness is an important factor for any negotiation. That important factor is intentionally ignored with the help of this dirty trick. Negotiators should not reveal the plan of leaving from a negotiation table. Escalating authority is a dirty trick commonly used in cross cultural negotiations (Cullen & Parboteeah, 2014, pp. 101-108). It is not at all appropriate for the cross cultural negotiations. With the help of this trick negotiators try to gain unfair supremacy in an equally authorized negotiation process. It destabilizes the balance of the negotiation. To avoid this trick all the negotiating parties should clarify decision making authorities before the negotiation only. Good Guy Bad Buy is also a familiar dirty trick. With the help of this trick negotiators try to exploit good nature of human being, which is significantly inappropriate for cross cultural negotiation. Concessions and discounts should not be offered in negotiation. It would help the negotiator to negotiate in a proper way. Answer 3 According to this theory, availability of the various motivational factors is not enough for motivating people. According to the Vroom’s expectancy theory, people’s actions are guided by their expectations and needs (Armstrong, 2006, pp. 78-82). It means positive expectations of reward that satisfy the individual needs; motivate people to perform their duties properly. The theory has clearly highlighted the importance of personal expectations and needs. In other words positive expectation and needs are the sources of motivation. Often those motivations come from the various rewards. This theory has categorically described that without fulfilling expectation of reward motivation cannot be achieved. According to this theory, motivation and expectation are interrelated. In a multicultural environment, multinational management implications of the expectancy model are significantly important in nature. Multinational organizations have to deal with multicultural environments. In multicultural environments employees come from the different backgrounds. Needs and expectations of the people vary from each other. In this context multinational managements struggle to motivate people with rewards. Due to the varying nature of expectations, managements face problems to come up with a common or fixed motivational reward that match people expectations (Cullen & Parboteeah, 2014, pp. 56-61). As an alternative multinational managements try to adjusts their rewards to match varying and diversified expectations. Making flexible reward allocation has significant impacts on the finances of the organizations. Multinational management faces significant difficulties in terms of team building. Interpersonal conflicts arise due to the varying nature expectations. Multinational managements face enough difficulties to resolve interpersonal conflicts. The expectancy model helps the management to identify the individual expectations related with a reward. It helps them to design their rewards in more specific ways. Answer 4 Various researches have categorically described that, performances have been reduced due to the individualistic culture. On the other hand collectivist cultures have been described as the effective culture. Individualistic cultures are only concerned with individual performances. Here collective efforts are not given importance. But effectiveness of performance is definitely dependent upon collective efforts. It is often being noticed that in spite of superior individual performance, projects or tasks fail. Performances cannot be dependent only on any individual. Generally big tasks or projects are divided among the team members. In this context collective efforts of the team members are significantly important for maintaining the performance. In individualistic effort there is no scope of idea sharing among the team members (Cullen & Parboteeah, 2014, pp. 78-86). It limits the problem solving attitudes of the individual and results in reduced performance. On the other hand in collectivist culture or team environment people share responsibilities and ideas among them. Individualistic cultures have limitations; all those limitations are responsible for reduced performance. Multinational managers must come up with various team building activities to manage the problems. They should give more focus towards collectivist culture instead of individualistic culture. References Armstrong, M. (2006). A handbook of human resource management practice. New York: Kogan Page Publishers. Cullen, J. B., & Parboteeah, K. P. (2014). Multinational management: a strategic approach (6th ed.). Mason, OH: South-Western. Moore, C. W. & Woodrow, P. J. (2010). Handbook of global and multicultural negotiation. New Jersey: John Wiley & Sons. Read More